Fudge – different thing, but similar.

A business is not a legal entity, and you cannot contract with yourself. But if the business is being operated under a company structure the company could rent from a property owned by you/you and spouse/spouse.

But what are the consequences – if the property is your main residence it could then be subject to CGT as it is now income producing. The company may be able to claim a deduction, but the rent will be income to you. This may result in tax savings overall or extra tax depending on the situation. There are special tax rules relating to related party transactions.

Also consider that there may be some good strategies involving a SMSF owned property being rented by a company/you running a business.

I could assist with that.

Its a bit late if u have alreDy entered into contract. Work out the structure in advance.

You can lend me money anytime. Are you referring to borrowing money?

1. Yes can generally claim all expenses not otherwised claimed – used to increase cost base.

2. No

3. get some advice

4. see a different accountant.

5. possibly

Sounds like other people are asking you answers to tax questions and then you are asking others for the answer. Are you a lawyer or a tax agent? If not then I would suggest you not answer their questions because of the risks involved.

I haven’t read the link, but…

I just did a loan for a person who earns 10 times more from rents than her salary. One lender wanted to do the deal as a commercial loan because of the number of properties she owned, but other lenders didn’t have a problem with it.

I would be worried about 2 main things:

1. Child porn/copyright infringment, and

2. Internet not working – they will be complaining constantly.

Yes I think you should consider the ownership structure in more detail.

Any property you buy will be cashflow positive very soon, if not immediately. This will then result in even more tax payable if you own it.

Can’t see why someone in your situation would even consider paying LMI. Just a waste of money in this instance. with your option C there is no reason to cross securities in this situation either.

Richard Taylor wrote:

In Qld having numerous Trust will not get you around the Land Tax threshold as your hold in will be aggregated where the Trustees are related.

Richard I disagree with this bit. Carefully structured each trust will get a separate threshold in QLD due to s20 Land Titles Act QLD.